Toyo India cancels Christmas and bonuses

Vol 19, PW 6 (19 Nov 15) People & Policy

Christmas stands cancelled for Japan-based Toyo Group’s Indian subsidiary! Or at least the end of year office party with reduced bonuses for staff and pay cuts as the company grapples with major losses.

In a single-page letter to staff on October 23, Toyo Engineering India managing director Itsuya Yanagi listed several measures needed to achieve “targeted profit” for this fiscal. Among the tough decisions is to pay only a 5% annual bonus to staff.

“However, we assure you that if we can achieve our financial targets,” writes Yanagi, “an additional amount of 5% ex-gratia (bonus) will be paid after the close of the financial year, around May 2016.” Other measures include the sale of fixed assets like the managing director's swanky flat in the Mont Blanc building in south Mumbai’s fashionable Kemps Corner area, a guest house for the company’s Japanese visitors at the Somerset building, and flats in Heritage building, also in Mumbai city.

Yanagi adds that the salaries of full-time directors (RY Kulkarni and VK Rao) will be cut and that salaries of Japanese staff were already reduced in April 2015. “You will agree such decisions benefit the company and its employees in the long run,” writes Yanagi.

“I have full conviction that we will overcome these difficult times and that the company will regain its financial health shortly.”

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